Effective: March 20, 2019
Latest Legislation: Senate Bill 273 - 132nd General Assembly
(A) As used in this section:
(1) "Contract holder" means the person who purchased a motor vehicle ancillary product protection contract, any authorized transferee or assignee of the purchaser, or any other person assuming the purchaser's rights under the motor vehicle ancillary product protection contract.
(2) "Motor vehicle" has the same meaning as in section 4501.01 of the Revised Code and also includes utility vehicles as defined in that section.
(3)(a) "Motor vehicle ancillary product protection contract" means a contract or agreement that is effective for a specified duration and paid for by means other than the purchase of a motor vehicle, or its parts or equipment, to perform any one or more of the following services:
(i) Repair or replacement of glass on a motor vehicle necessitated by wear and tear or damage caused by a road hazard;
(ii) Removal of a dent, ding, or crease without affecting the existing paint finish using paintless dent removal techniques but which expressly excludes replacement of vehicle body panels, sanding, bonding, or painting;
(iii) Repair to the interior components of a motor vehicle necessitated by wear and tear but which expressly excludes replacement of any part or component of a motor vehicle's interior;
(iv) Repair or replacement of tires or wheels damaged because of a road hazard;
(v) Replacement of a lost, stolen, or inoperable key or key fob.
(b) A motor vehicle ancillary product protection contract may, but is not required to, provide for incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental, and emergency road services.
(c) "Motor vehicle ancillary product protection contract" does not include any of the following:
(i) A motor vehicle service contract;
(ii) A vehicle protection product warranty as defined in section 3905.421 of the Revised Code;
(iii) A home service contract as defined in section 3905.422 of the Revised Code;
(iv) A consumer goods service contract as defined in section 3905.423 of the Revised Code;
(v) A contract for prepaid routine, scheduled maintenance only.
(4) "Motor vehicle service contract" means a contract or agreement to perform or pay for the repair, replacement, or maintenance of a motor vehicle due to defect in materials or workmanship, normal wear and tear, mechanical or electrical breakdown, or failure of parts or equipment of a motor vehicle, with or without additional provisions for incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental, and emergency road services, that is effective for a specified duration and paid for by means other than the purchase of a motor vehicle.
(5) "Provider" means a person who is contractually obligated to a contract holder under the terms of a motor vehicle ancillary product protection contract.
(6) "Road hazard" means a condition that may cause damage or wear and tear to a tire or wheel on a public or private roadway, roadside, driveway, or parking lot or garage, including potholes, nails, glass, road debris, and curbs. "Road hazard" does not include fire, theft, vandalism or malicious mischief, or other perils normally covered by automobile physical damage insurance.
(7) "Reimbursement insurance policy" means a policy of insurance issued by an insurer authorized or eligible to do business in this state to a provider to pay, on behalf of the provider in the event of the provider's nonperformance, all covered contractual obligations incurred by the provider under the terms and conditions of the motor vehicle ancillary product protection contract.
(8) "Supplier" has the same meaning as in section 1345.01 of the Revised Code.
(B) All motor vehicle ancillary product protection contracts issued in this state shall be covered by a reimbursement insurance policy.
(C) A motor vehicle ancillary product protection contract issued by a provider that is required to be covered by a reimbursement insurance policy under division (B) of this section shall conspicuously state all of the following:
(1) "This contract is not insurance and is not subject to the insurance laws of this state."
(2) That the obligations of the provider are guaranteed under a reimbursement insurance policy;
(3) That if a provider fails to perform or make payment due under the terms of the contract within sixty days after the contract holder requests performance or payment pursuant to the terms of the contract, the contract holder may request performance or payment directly from the provider's reimbursement insurance policy insurer, including any obligation in the contract by which the provider must refund the contract holder upon cancellation of a contract;
(4) The name, address, and telephone number of the provider's reimbursement insurance policy insurer.
(D) A motor vehicle ancillary product protection contract that includes repair or replacement of glass on a motor vehicle as provided in division (A)(3)(a)(i) of this section, shall conspicuously state: "This contract may provide a duplication of coverage already provided by your automobile physical damage insurance policy."
(E) A reimbursement insurance policy that is required to be issued under this section shall contain:
(1) A statement that if a provider fails to perform or make payment due under the terms of the motor vehicle ancillary product protection contract within sixty days after the contract holder requests performance or payment pursuant to the terms of the contract, the contract holder may request performance or payment directly from the provider's reimbursement insurance policy insurer, including any obligation in the contract by which the provider must refund the contract holder upon cancellation of a contract.
(2) A statement that in the event of cancellation of the provider's reimbursement insurance policy, insurance coverage will continue for all contract holders whose motor vehicle ancillary product protection contracts were issued by the provider and reported to the insurer for coverage during the term of the reimbursement insurance policy.
(F) The sale or issuance of a motor vehicle ancillary product protection contract is a consumer transaction for purposes of sections 1345.01 to 1345.13 of the Revised Code. The provider is the supplier and the contract holder is the consumer for purposes of those sections.
(G) Unless issued by an insurer authorized or eligible to do business in this state, a motor vehicle ancillary product protection contract does not constitute a contract substantially amounting to insurance, or the contract's issuance the business of insurance, under section 3905.42 of the Revised Code.
(H) Unless issued by an insurer authorized or eligible to do business in this state, a contract identified in division (A)(3)(c)(i) or (v) of this section does not constitute a contract substantially amounting to insurance, or the contract's issuance the business of insurance, under section 3905.42 of the Revised Code.
(I) The rights of a contract holder against a provider's reimbursement insurance policy insurer as provided in this section apply only in regard to a reimbursement insurance policy issued under this section. This section does not create any contractual rights in favor of a person that does not qualify as an insured under any other type of insurance policy described in Title XXXIX of the Revised Code. This section does not prohibit the insurer of a provider's reimbursement insurance policy from assuming liability for contracts issued prior to the effective date of the policy or July 1, 2009.
(J) A contract or agreement described in division (A)(3)(a)(iv) of this section in which the provider is a tire manufacturer shall be exempt from the requirements of division (B) of this section if the contract or agreement conspicuously states all of the following:
(1) That the contract or agreement is not an insurance contract;
(2) That any covered obligations or claims under the contract or agreement are the responsibility of the provider;
(3) The name, address, and telephone number of any administrator responsible for the administration of the contract or agreement, the provider obligated to perform under the contract or agreement, and the contract seller;
(4) The procedure for making a claim under the contract or agreement, including a toll-free telephone number for claims service and a procedure for obtaining emergency repairs or replacements performed outside normal business hours.
Structure Ohio Revised Code
Chapter 3905 | Insurance Producers Licensing Act
Section 3905.01 | Insurance Producers Licensing Act Definitions.
Section 3905.02 | License Required.
Section 3905.03 | Exceptions to Licensing Requirement.
Section 3905.04 | Written Examination of Applicant for Agent License.
Section 3905.041 | Exceptions to Program of Insurance Education or Examination Requirement.
Section 3905.05 | Application for Resident Insurance Agent License.
Section 3905.051 | Criminal Records Check; Fingerprinting; Confidentiality.
Section 3905.06 | Issuance and Contents of License - Lines of Authority.
Section 3905.061 | Agent to File of Change of Address.
Section 3905.062 | Portable Electronics Insurance.
Section 3905.063 | Self-Service Storage Insurance; License Required.
Section 3905.064 | Travel Insurance Definitions.
Section 3905.065 | Travel Insurance Agent License; Travel Protection Plans; Policy Requirements.
Section 3905.066 | Travel Retailers.
Section 3905.067 | Unfair and Deceptive Acts or Practices.
Section 3905.068 | Tax on Travel Insurance Premiums.
Section 3905.069 | Travel Administrators.
Section 3905.0610 | Classification of Travel Insurance; Eligibility and Underwriting Standards.
Section 3905.07 | Nonresident Insurance Agent or Surplus Lines Broker License; Renewal.
Section 3905.071 | Nonresident to File Change of Address.
Section 3905.072 | Nonresident Limited Lines Insurance Agent License.
Section 3905.08 | Reciprocity.
Section 3905.09 | Temporary Insurance Agent License.
Section 3905.11 | Agent's Use of Assumed Name.
Section 3905.14 | Disciplinary Actions.
Section 3905.15 | Hearing to Determine Administrative Action Modification.
Section 3905.16 | Surrender of License.
Section 3905.18 | Paying Unlawful Consideration.
Section 3905.181 | Accepting Consideration Without License.
Section 3905.182 | Sale of Shares of Capital Stock of Life Insurance Company or Agency.
Section 3905.20 | Appointment of Insurance Agent to Act as Agent of Insurer.
Section 3905.201 | Limited Line Credit Insurance Program of Instruction.
Section 3905.21 | Notice of Terminating Relationship With Insurance Agent.
Section 3905.24 | Confidentiality of Records and Information - Exceptions.
Section 3905.26 | Centralized Agent License Registry.
Section 3905.29 | Mutual Protective Associations Exempted.
Section 3905.30 | Resident and Nonresident Surplus Lines Broker's License.
Section 3905.31 | Prohibitions.
Section 3905.32 | License Fees.
Section 3905.331 | Exempt Commercial Purchasers; Qualifications; Qualified Risk Managers.
Section 3905.332 | Designation as Domestic Surplus Lines Insurer.
Section 3905.34 | Separate Accounts.
Section 3905.37 | Prohibited Acts.
Section 3905.39 | Continuation of Certificates and Licenses.
Section 3905.40 | Fees Paid to Superintendent of Insurance.
Section 3905.401 | Valuation Fee Not Applicable to Reinsurance Ceded to Affiliated Companies.
Section 3905.41 | Accounts for Fees.
Section 3905.42 | Insurance Business Must Be Authorized.
Section 3905.421 | Vehicle Protection Product Warranty.
Section 3905.422 | Homes Service Contract Are Consumer Transactions.
Section 3905.423 | Consumer Goods Contracts to Be Covered by Reimbursement Insurance.
Section 3905.424 | Waiver of Customer Obligation Not Insurance Matter.
Section 3905.426 | Requirements for Ancillary Product Protection Contracts.
Section 3905.43 | Advertising Limitations.
Section 3905.44 | Limitation Upon Domestic Companies.
Section 3905.45 | Payment of Funeral or Burial Expenses Policy.
Section 3905.451 | Funeral or Burial Goods or Services Coverage Not Subject to Preneed Provisions.
Section 3905.46 | Application of Law.
Section 3905.47 | Agent Training Programs.
Section 3905.471 | Insurance Navigator Certification.
Section 3905.472 | Qualified Health Benefit Plans.
Section 3905.473 | Exchange Listings.
Section 3905.474 | Qualifications for In-Person Assisters.
Section 3905.481 | Continuing Education Requirements.
Section 3905.484 | Establishing Criteria for Course or Program of Study for License Examination.
Section 3905.486 | Adoption of Rules.
Section 3905.49 | Prohibiting False Representation as Independent Agent.
Section 3905.50 | Terminating Independent Insurance Agent Contract.
Section 3905.53 | Effect of Child Support Default on License.
Section 3905.56 | Compensation by Public Entity for Placement of Insurance.
Section 3905.61 | Controlled Insurers Definitions.
Section 3905.62 | Application of Sections.
Section 3905.63 | Limits on Business Placed With Controlled Insurer by Controlling Producer.
Section 3905.64 | Notice to Prospective Insured by Controlling Producer.
Section 3905.65 | Remedies for Noncompliance.
Section 3905.71 | Managing General Agent Definitions.
Section 3905.72 | Managing General Agent License Requirement.
Section 3905.73 | Responsibilities of Managing General Agent.
Section 3905.74 | Independent Financial Examination of Each Managing General Agent.
Section 3905.75 | Acts of Agent Deemed Acts of Insurer - Examinations.
Section 3905.76 | Prohibition.
Section 3905.77 | Penalties for Violations.
Section 3905.78 | Rights Not Limited or Restricted.
Section 3905.81 | Reinsurance Intermediary-Broker or Intermediary-Manager License Required - Rules.
Section 3905.83 | Surety Bail Bond Agent Definitions.
Section 3905.84 | Surety Bail Bond Agent to Be Qualified, Licensed, and Appointed.
Section 3905.841 | Persons or Classes of Persons Not to Act as Agents.
Section 3905.85 | Surety Bail Bond Agent License.
Section 3905.851 | No Imposition of Local Licensing Fees.
Section 3905.86 | Appointment of Agent by Insurer.
Section 3905.861 | Extending Appointments to Affiliated Agents.
Section 3905.862 | Expiration or Cancellation of Appointment; Fee.
Section 3905.88 | Continuing Education.
Section 3905.89 | Notice of Change of Principal Business Address or Telephone Number.
Section 3905.90 | Records of Surety Bonds to Be Maintained - Furnishing of Information.
Section 3905.901 | Determination of Direct Written Premiums for Bail Bonds.
Section 3905.91 | Build-Up Funds.
Section 3905.92 | Requirements for Acceptance of Collateral Security or Other Indemnity.
Section 3905.921 | Discharge of Bond Where Collateral Security or Other Indemnity Accepted.
Section 3905.93 | Bail Bond - Charges and Fees.
Section 3905.931 | Furnishing of Forms and Other Supplies.
Section 3905.932 | Prohibited Acts.
Section 3905.933 | Signing or Countersigning Agent's Name to a Bond.
Section 3905.934 | Advertising Requirements.
Section 3905.94 | License Suspension or Revocation.